Warrior Trading Blog

Back From California +$7,516.04 In 1hr On Monday Morning!


Back From California +$7,516.04 In 1hr On Monday Morning!


What’s up, everyone? Monday morning. It’s the start of a new week. I’m excited. Today was another great day of trading. Finishing the morning up $7,516.04. Man, another great day of trading. I’m at $75,000 of profit on the month, $9,000 away from my best month ever. Best month ever was last month when I made $84,000, and my best month ever was the month before that when I made $82,000. This is just an incredible hot streak, three months of $80,000. I mean, that’s crazy.

Right now, I am just grateful for January momentum. The January effect is in full force. That’s when traders come back into the market, start to rebuild their portfolios after closing out trades at the end of the year, taking their tax losses and all of that stuff. We’re back at it, having a great month, and here we are at the beginning of a new week.

We’ve still got, what is it, seven days left in the month, and I think that I have a chance of this not only being my best month ever, but I have a chance of breaking $100,000 in profit this month. I’m going for 100 grand, and we’ll see what happens.

This morning, when I sat down to trade … I’ve got my dog here hanging out by my feet. She missed me. She was so happy that I’m home. This morning, when I sat down, I knew that I was a little bit tired. This weekend, traveling, it was a really long day on Saturday, from LA to Minneapolis, a layover from Minneapolis back to Hartford, driving back home, got home really late on Saturday night, was super caffeinated, couldn’t really sleep. Sunday, had all these errands to run.

Here on Monday morning, I asked myself, did I sleep well, did I sleep, and the answer was no, and no. I’m tired. There’s not a lot of food in the house. I’m kind of worn out. I said I’m only going to trade for an hour today. I feel like I’m going to be trading with limited emotional and mental capacity, and you have to be really mindful of that because when you’re tired and not feeling really 100%, you can make impulsive decisions. You can start to get frustrated. You can just trade aggressively, trade sloppy, and so I wanted to be careful today.

Now, my last three trades of the day were three back-to-back losers, and that was my cue to throw in the towel and be done for the day, but you know what? $7,500 is a great day. Today was my first day of trading in the IRA account, which was really exciting. I’m going to make a separate video where I talk about the IRA, show you guys how I set up the account, what my goals are, and break it all down for you, but today, let’s get into the midday market recap, but before we do, let’s roll that intro video.

Let’s start breaking down the trades from today. Let’s see. Let me drag up my Lightspeed account here. There’s my Lightspeed account. $6,316.04, and here is my Interactive Brokers account. Finishing … This is a little focusing here, and I’ll explain this a second. Finishing up $1,200 in this account, and I have no idea what the commissions will be, but they’re not going to be high because I only took one trade. There’s a second line here, which is the demo account. I took my first trade accidentally in the demo account that they set up for you when you open an account with them. That was a little bit of a bummer because it was a $660 win. This account only has $8,733, so it’s a really small account. To make 600 bucks is a great trade, and that was really annoying that I realized after I closed the trade that it was in the demo version, not in my actual live account.

I’m going to have a whole separate video here I talk about setting up this Interactive Brokers account and why I’ve done it, but it’s an IRA account, a ROTH IRA account, so this is a retirement account. I can’t draw out any of the gains until I’m 59.5 years old, but all of the gains are tax-free, and it’s tax-free when I take the money out as well, so I don’t have to pay income tax when I pay myself $100,000 when I’m 59.5 years old. It’s totally tax-free, so there’s a huge advantage there.

The disadvantage of trading an IRA account is that you don’t have margin. You don’t have buying power beyond your cash balance, number one, and number two, you can’t short stocks. Those are two fairly significant disadvantages, and that’s why it’s not going to be my primary trading account until it’s at least above 25,000. I am limited to only three day trades per week, so I need to write down on my calendar here, let’s see, that I took one day trade today, and that means I’m down to two day trades for the rest of the week. It’s actually in a five-day rolling period, so it doesn’t reset on Monday. It’s five-day period.

I should probably use a different color pen so I can really keep track of this, but I’ll just write here, IRA day trade number one. This is going to be a little bit of a slower process growing this account above $25,000. It is, however, a margin account. I don’t have to wait for the trades to settle, and that’s why I opened the account with Interactive Brokers. If I opened it with E-Trade, I would have to wait two days for this trade that I took today to settle, and it means I wouldn’t be able to take a trade tomorrow because the cash is tied up waiting for settlement period.

The nice thing with TD Ameritrade and Interactive Brokers is that they give you margin. It’s called settlement margin. You can day-trade the account, in other words, but anyways, so let’s go and look at the trades from today.

Very first trade of the day was LTBR in my main trading account. I didn’t take that trade in Interactive Brokers. LTBR was on our gap scanner this morning. This one, I was watching closely. As you can see, I’m down $55 on the name, which is a little disappointing. Right out of the gates, I was watching it for a break of pre-market highs. The pre-market high was 2.62, so I got in at 2.60 and 2.65 with 75,000 shares. I then sold it at 2.70 and 2.74 and 2.62 for a $500 profit, so green on that first trade, which was good. That was a gap and go setup getting in for the break of the pre-market highs.

The second trade was getting back in at .74 as it started to squeeze up, and you can see here, I got back in at .74 and .75. That was right, where was it? Yeah, it was right in this candle here. We tapped at of .82. I sold at .81, .77, and .79 for like $300 profit, or 250, so I was up about $800 on the name after those two trades. At that point, I’m done on LTBR for the first gap and go trades, up $800 on the day.

I’m like, all right, I’m going to sit tight and wait for a scanner alert. Then the first scanner alert that I saw was LT, sorry, it was MNGA at 3.84. MNGA hits the scanner. I’m like, okay, this is what we generally do. We wait for stocks to hit the scanners, then we jump in. I jumped in MNGA at 3.90, 3.95, 3.95, 3.95. A little aggressive on the size. Of course, at this point, I had a cushion on the name, or on the day, and when I looked at this, what I really liked was it has a recent reverse split. Stocks’ recent reverse splits, and KBSF is a really good example, can sometimes put in exponential green days.

Here we go. Right here, reverse split. Next day, it squeezes up to 4.25, and within the next three days, it hits $18. That’s the recent reverse split potential. When I saw that this was a recent reverse split, I was like, oh, that’s interesting. I gotta jump on this quick, so I jumped in quick thinking it would really open up. Obviously, I was wrong because it didn’t hold these levels at all.

I’m in at 3.90, and this was the first trade in my IRA account. I got in, unfortunately, with my demo account at 4.31. Basically, what happens is I type in here MNGA, MNGA, and I didn’t have my hotkeys set up because I knew that I wanted to max out my buying power, but unfortunately, Interactive Brokers doesn’t allow you to use the hotkey where you buy based on the percentage of buying power.

What I was doing with Suretrader, when I had my really small account is I would buy based on 95% of my buying power. My buying power is $8,700. I would say, buy 87, well, let’s see, 8,733 times .95 is 8,296, so I would say buy $8,296 worth of that stock, and it would be some odd number like, well, let’s see, divided by 4.30 would be, I guess, actually, 1,929 shares. It actually would’ve been less than 2,000. Probably if I had pressed this order with my live account, it would have said it would have rejected the order, but anyways, it filled in the demo account, and because this here is showing the demo, I would’ve had to go and select this.

Now, since this trade, I’ve set up my hotkeys, so I can do a hotkey for 2,000, for 3,000, 2,000, and 1,750 shares. Then I can press the enter button when I’m ready to take that trade. I’ve got that figured out, so my first trade was a little bit of a screw-up because the whole time I was in it, I thought I was in it with real money. When I sold it for 660 bucks at 4.64, I was like, nice. That was solid. Good trade. Almost 10% growth in the account. Then I looked up here and realized, wait a second, that’s not my account number. Dang it. I screwed up. That was disappointing.

In my main account, I sold at, oh, sorry, I added at 3.30, added again at 4.30, added again at 4.69. I really thought this was going to tap $5. I was being aggressive. I ended up stopping out at 4.50, 4.60, and 4.48, and I guess all the way down at 3.96. I stepped up to the plate on this one. Thought it was going to be a really big win, and I guess I was wrong. $4,600 is still a good trade, but I was trying to be a little more aggressive on that. Anyways, kind of a bummer there on both sides. I screwed it up on my IRA account, and I was not, I was just too aggressive in my main account, but 4,600 bucks is good. At that point, I was up 6,000 on the day.

I then got back into LTBR here in my main account at $3. This was, and as you can see, MNGA did not hold up at all, which is really a shame. It had a lot of potential, and it just totally broke down. LTBR, back at this one. I got in here as it started to squeeze up, as it broke through $3. I jumped in at 3, added at 3.12, 3.12, sold 3.25, 3.32, 3.24. That added another $1,000, and at that point, I was up $1,700 on the name. That was $1,700 profit on LTBR. At that point, it had put me up, I don’t know, $8,000 or so on, no, it put me up 6,000 because that was before the CHCI trade.

Then I took CHCI. This one hits the scanners, and I fumbled my hotkeys again. I pull it up, and I press, as soon as I pull it up in my level two, I press shift-1 because I’m like, oh, I’m going to prepare my order to buy 3,000 shares. It fills the order at a $1.93, and I was like, whoa. I thought I had that hot key set up to load the order, right here, load, not send the order. It sent the order, so all of a sudden, I’m in this thing, so then I was like I’ll add in my main account too. Now I’m in the trade.

I added at 2.12, 2.14, 2.16 in my main account, and then it’s halted, so it’s squeezing up. I’m like, all right, that’s fine. I’ll try to add around the half dollar, 2.50, something like that. It ends up opening and squeezing up and tapping 2.60. I added at 2.17, and yeah, I guess that was the last place I added was 2.17. I think I added there out of the halt, though. I had the order ready to fill, and once it resumed trading, that’s when I got filled. I’m pretty sure it was when it resumed trading. 9:55, yeah, because I knew I was filling out of the halt, but anyways, I think going into the halt, I had like 8,000 shares or something like that, and then this order filled as soon as resumption. I sent the order right before the halt.

We got a high of 2.60. I didn’t sell up there in my main account. I ended up stopping out as it came back down at 2.30. In my Interactive Brokers account, I also sold at 2.33, so $1,200, 3,000 shares from 1.93 to 2.33. That gives me $1,200 of profit there, which is good. I mean, overall, it’s a good day. $6,316, plus the 1,200 puts me at $7,516.04.

Green is good. It’s a good day. Growth in the small account. Now, if I had taken both of these trades today, I would only have one trade left on the week, but I’d be up almost $2,000 on the day. That’d be like a 20% growth in my IRA account, which is awesome, but obviously, it’s challenging to try to flip back and forth between two screens. It is not easy, and today, I was a little tired from traveling over the weekend, stuff like that. It probably contributed to fumbling a little bit on these orders, but fortunately, we had good momentum, and I was able to capitalize and lock in some profits, so another green day, plus $7,500 is terrific.

That puts me on the month at $75,592. We are $25,000 away from the 100K month, and we’ve got, let’s see, two, four, six, seven trading days left, so 2,000, let’s see, $3,000 a day average, just about, would get me there. That’s the spot that I’m watching for this month. I really think I can do it. It’ll be combined in my main account and my IRA, but my IRA’s going to be a smaller contributor.

Now, I’ll say, this IRA account was funded from the gains of my main trading account that I started with $583. In the separate video where I talk about how I set up the account, I’ll explain why I’m starting with 8,700 instead of the 11,000 that I had initially planned to start with, but the way you take a, the way a high income earner like myself gets a ROTH IRA is you contribute to a traditional, and then you convert it to a ROTH. It’s called a backdoor conversation, and you can do it at any time during the year. You just have to, I think you have to pay your tax or something on it, but at the time of conversion.

In any case, that’s what you do, and I had a financial advisor help me set it up. It’s now up and running, and I’m ready to start growing this account. $25,000 is the first benchmark in this account because once I get over 25,000, I can day trade more than three times a day, or more than three times a week. Right now, I’m limited, so it’s probably going to take a couple months or something to build it up, unless I get lucky and I get into a trade that goes up 100%, but I’m just going to pretty much trade the same away I would trade my normal account and just accept that it’s going to take a while. If I try and swing of the fences and go for home runs, that’s going to get me into trouble. I’m going to have trades where I am up 30, 40 cents. I don’t take the profit, and it ends up turning into a loser. I can’t let that happen, so I just need to make steady progress on this account. The first few trades make a big difference because it’s going to build up my equity.

Tomorrow, I’ll open with close to $10,000. That’s a big jump forward. I’ll be able to start going in here to my hotkeys, and the way I made this little sticky note. Shift-1 for price under $3. Shift-2, price between $3 and $4. Shift-3, price between 4 and 5. I’ll just be able to keep updating that so when I press shift-1, it’ll be not 3,000 shares, but 3,300, 3,400, and I’ll just keep slowly increasing those until I’m taking 5,000, 8,000 shares or whatever it is per trade.

Anyways, that’s it for today, finishing the morning up $7,500. Green is good. We’ll be back at it first thing tomorrow morning 9:00, 9:15, pre-market analysis, and hopefully, we’ll see some good opportunities again tomorrow. Keep LBTR on watch today if it can get back over 3. Sorry, and I forgot to say, my last three trades on it, I got chopped out. I got in at three times and lost three times in a row, which is how I gave back the $1,700 of profit that I had on it. That was on these candles right here. I got in right here for the break of 3, stopped out on the drop, got back in right here, stopped out on the drop, and got back in right here, and stopped out on the drop. I kept thinking it was going to open up over three and squeeze and hit 3.30, but it just kept not happening.

After three losses in a row, that’s my cue to throw in the towel, and so that’s why we’re finishing the morning here a little on the early side. All right, so anyways, that’s it for me. I hope you guys had a good morning today, and those of you on Facebook or YouTube, feel free to leave comments in the footer or below the video. I’ll come back and answer those later. I will see all of you guys first thing tomorrow morning. All right, see you guys in the morning.

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